While considering data entry outsourcing costs, there are various things that one has to pay attention to. Most importantly, one must carefully compare all the charges and hidden costs among key providers. The cost of outsourced data entry is $4–8 per hour offshore and $10–18 per hour nearshore.
In the US, the cost per hour is from $15 to $25. The four pricing models applicable here are per hour, per record, per month, and per project. For a detailed cost breakdown, consider the following article.
Businesses Exploring Lower Data Entry Outsourcing Costs & Other Key Benefits
Businesses are rethinking in-house data entry costs because data entry outsourcing costs are cheaper! Not just being a cost-effective solution, outsourcing also offers other benefits, such as more time, improved work quality, cost efficiency, etc.
More time: When you delegate an aspect of your regular work, that means you end up saving time. Now, with this saved time, you can focus more on core activities. That speeds up business growth.
Improved work quality: Outsourcing data entry to an experienced agency leads to better quality in the work. Entries become less prone to errors and inaccuracies.
Cost efficiency: The firm that provides you with outsourced services holds years of specialization in the field. Thus, it enjoys economies of scale. That means you get data entry done at affordable prices.
DataTalk: According to ZipRecruiter, the yearly salary of a data entry clerk is $40,504. That translates into $19.47 for an hourly pay.
Faster scalability: Your workload is supposed to go up and down as per the fluctuations in the market. And that means you need enough in-house capability to handle these dynamics smoothly. It is the point where operational costs spike and make in-house data entry the most expensive process. However, owning the higher capacity all the time to meet all types of data entry demands is the very business for the third party providing outsourcing! Scalability becomes hassle-free and faster.
Access to advanced technologies: Third-party agencies make sure they are well-equipped with all the latest software, capabilities, and best data entry tools. That helps them deliver quality work in no time.
The Data Entry Outsourcing Cost & 4 Types of Pricing Models
The four data entry service pricing models are based on pay per hour, per record, on a monthly basis, and on a project basis. These are explained in detail below.
1. Per-Hour Pricing
In this pricing mode, the third party handling your data-entry tasks will charge for each hour of work.
Price range: $4–8/hr offshore, $10–18/hr nearshore, and $15–25/hr US-based
Best for: Ongoing, variable-volume work, i.e., CRM updates, invoice entry, order processing, etc
Not ideal for: Complex, judgment-heavy tasks
Red flag: hidden costs escalating the final charges
2. Per-Record or Per-Keystroke Pricing
This pricing is based on each record that has been carefully completed. An entry can be a record, an invoice, a form, a keystroke, or any other type of transaction.
Price range: $0.01–0.05 per simple record and $0.05–0.15 per complex multi-field record
Best for: Structured data that is in high volume and clearly defined, for example, surveys, product SKUs, contact lists
Not ideal for: Unstructured data with variety
Red flag: Errors in entries and lack of accuracy
3. Monthly Managed Service
Companies that need a monthly dedicated data management capability stick to this pricing model. In which they just have to pay once a month, like paying a salary to an employee.
Note:This option is much cheaper than maintaining an in-house staff.
Price range: $800–5,000+ per month, as it heavily depends on volume tier and nature of the documents
Best for: Businesses where data flows in consistently all the time
Not ideal for: Seasonal data entry requirements
Pro tip: Get the latest AI and RPA technologies deployed in your work for fast and accurate results.
Do you know:Volume tier is a smart pricing strategy in which the service charge is calculated based on the category your data volume falls in.
4. Project-Based Pricing
The project-based pricing is the final model in our discussion of data entry outsourcing cost. It is where the third party charges a specific amount of money for the completion of a clearly defined work or project.
Price range: $200–50,000+
Best for: One-time projects, such as legacy data migration, data extraction, archive conversion, and backlog digitization
Not ideal for: a constant flow of data, where the option of a monthly managed service is the best
Watch for: Additional onboarding or set-up charges
Note:This one-time price is subject to change as per the scope, complexity, and volume of the data.
Data Entry Outsourcing Cost Comparison with In-House & AI-Augmented Data Entry
Consider the data entry outsourcing cost with other options, like in-house and AI-augmented facilities, below. The table explores key differences based on hourly rate, records per hour, monthly cost, accuracy SLA, setup time, and scalability.
Comparison
In-House
Outsourced
Dataqix AI-Augmented
Hourly rate
$19.47 per hour
$5–7 per hour
$5–8 per hour
Records per hour
Approximately 125 to 150
Approximately 125 to 150
300–450 (AI assist)
Monthly cost (10k records)
Approximately $1,400 to 1,800
Approximately $400 to 700
$180–350
Accuracy SLA
Varies
96 to 98%
99–99.9%
Setup time
Weeks for both hiring and training
Days to weeks
Days
Scalability
Hiring more staff
Adding operators
Instant with Cloud RPA
Note:Providers equipped with AI capabilities often process data faster, ensuring cost and time savings. If you have high-volume data, that will help you save significant amounts of money.
Hidden Costs to Watch Out For While Considering Data Entry Outsourcing Cost
Under the data entry outsourcing cost, you should also pay attention to the hidden charges. These are explained below and are often related to rework, penalties, licensing, format conversions, etc.
Rework & error correction costs: Consider a 2% error rate on 50,000 records. That means 1,000 entries will be wrong. So, if you spend $20 per hour to fix the issue in-house, it will lead to a huge expense or invisible charges of $130–160.
Contract lock-in penalties: If you are going to experience the services of a provider for the first time, ensure a 30-day exit clause in your contract. That will allow you to switch the provider after a reasonable period of time. That is crucial because most providers charge 1 to 3 months’ fees for terminating the services early.
Per-seat software licensing: In case your provider passes the cost of using licensed software, like OCR or CRM tools, down to you, that will translate into $50 to $200 a month. A very huge hidden cost that you must look out for.
Data format conversion fees: If your data entry requirements need specific types of data formatting as well, you might have to pay an extra fee. However, during the first-time purchase, such charges might be neglected by the provider.
Turnaround rush fees: During the peak season, businesses often face work overload. That is where faster data entry services are needed. For that, providers often charge extra! It can add up to 20 to 40% of the total outsource data entry price!
Note: Before making any long-term commitments with a provider, check for the following red flags.
Per-keystroke pricing with no accuracy guarantee attached
No trial period availability
Vague SLAs
What Affects Data Entry Outsourcing Cost?
The factors that affect data entry outsourcing costs are data volume, document complexity, data type & fields, accuracy requirement, turnaround time, and other aspects as listed below.
Data volume: The higher the amount of data, the higher the cost of management will be at an outsourced location. However, if the records go above 50,000 per month, you can take advantage of the bulk rates.
Document complexity: Suppose you need to get data from simple survey forms. In that case, charges would be low. But in case documents are full of multi-column, mixed data, expect higher prices.
Data type & fields: Simple and structured data is 30 to 50% less expensive than complex data types. Furthermore, dealing with single-field entries is cheaper than multi-relational data!
Accuracy requirement: Under standard SLAs, 96 to 98% precision is assured. But, in case you need almost 100% accuracy, that will attract additional charges of up to 15 to 25%. That is because your work will require the provider to increase QA layers. More human-based interference is needed for greater accuracy.
Turnaround time: Having the provider work faster also accelerates the charges. For example, if you need some data to be processed on the same day, that will incur extra charges over base prices. That is why you should always plan for the peak seasons in advance.
Integration & output format: Direct API integration into your Salesforce, SAP, or QuickBooks, with suitable data formats, also adds to the final prices. And, thus, on the other hand, delivery of clean CSV is cheaper, which means lower data entry cost per hour.
How to Get an Accurate Quote for Data Entry Outsourcing Cost
If you want to get accurate quotes regarding the data entry outsourcing cost, you must take care of certain aspects. These include volume, document type, field extraction number, required accuracy level, and preferred output format.
Volume: You must know well in advance your estimated monthly data volume.
Document type: Clearly communicate what your document type is, for example, digital PDF, scanned paper, web form, spreadsheet.
Field extraction number: A record is the source you submit to, or your provider has to extract data from. So, how many details are to be extracted from each source is also a crucial matrix. That also affects the final prices.
Required accuracy level: Try to quantify your accuracy demand. For example, include expressions in your SLAs, like 2% error or 100 wrong entries per 10,000 entries accepted. That will help you be precise in the level of precision you need in your work.
Preferred output format: Choose right from the beginning in what format you require your organized data to be!
Knowing well in advance about these aspects helps you get the most accurate quotes from a service provider. If you want instant quotes, contact us and start your outsourcing journey right away with Dataqix.
FAQs
How much does it cost to outsource data entry per hour?
It is offshore $4–8 per hour, nearshore $10–18 per hour, and US-based $15–25 per hour. An AI-augmented provider always offers higher output at lower rates.
Is data entry outsourcing cheaper than hiring in-house?
Yes, that is broadly due to economies of scale and the power of specialization in the field.
What is per-record pricing for data entry?
It is a pricing model in which the client has to pay for each entry maintained by the provider.
How do I reduce data entry outsourcing costs?
You can try three simple methods for that, as listed below.
Increase volume for bulk pricing
Standardize document formats before sending
Ensure your provider is AI-augmented for faster processing
By Tina Brown
By Jim Hartman